KBWD vs VYM
Invesco KBW High Dividend Yield Financial ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KBWD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 5.39% | 0.04% | |
| AUM | $425M | $81.6B | |
| Dividend Yield | 14.38% | 2.24% | |
| Holdings | 41 | 616 | |
| YTD Return | -1.64% | +14.66% | |
| 1Y Return | +2.32% | +22.16% | |
| 3Y Return (annualized) | +5.58% | +18.72% | |
| 5Y Return (annualized) | +1.79% | +12.18% | |
| Volatility (annualized) | 21.0% | 14.6% | |
| Max Drawdown | -65.2% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 2, 2010 | Nov 10, 2006 |
KBWD vs VYM Performance
Invesco KBW High Dividend Yield Financial ETF (KBWD) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KBWD returned +2.32% while VYM returned +22.16%. Year to date, KBWD is down 1.64% versus a gain of 14.66% for VYM.
Over three years, KBWD compounded at +5.58% per year against +18.72% for VYM; over five years the annualized figures are +1.79% and +12.18% respectively. Across the full 16-year window we track, VYM has the edge at +7.01% annualized vs -0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWD has been the more volatile fund, with annualized monthly volatility of 21.0% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -65.2% for KBWD and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KBWD charges 5.39% per year while VYM charges 0.04%. On a $10,000 position that is $539 vs $4 annually, a gap of $535 per year that compounds over a long holding period. On income, KBWD currently yields 14.38% against 2.24% for VYM.
Holdings Overlap
KBWD and VYM share 8 holdings out of 634 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KBWD or VYM?
KBWD has an expense ratio of 5.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $535 per year of difference.
Which performed better, KBWD or VYM?
Over the past year KBWD returned +2.32% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), KBWD annualized -0.20% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, KBWD or VYM?
KBWD has been the more volatile fund at 21.0% annualized versus 14.6% for VYM. Worst drawdown: KBWD -65.2% vs VYM -58.8%.
Should I hold both KBWD and VYM?
KBWD and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWD and VYM?
KBWD and VYM share 8 common holdings with a 0.3% weight overlap. Combined, they hold 634 unique securities.
Which pays a higher dividend, KBWD or VYM?
KBWD yields 14.38% while VYM yields 2.24%, so KBWD currently pays the higher dividend yield.
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